Pearson forms alliance with AOL

Pearson has revealed a far-reaching alliance with AOL to develop an interactive education network.

The deal is part of Pearson’s plan to expand the online presence of its education business, and a number of further internet deals are planned.

The online learning portal, set to be launched later this year, will draw together content from Pearson Education and competing educational publishers. The announcement is the first sign that Pearson is bowing to market pressures to detail how it plans to spend the recently raised £250 million.

The site will be promoted heavily across AOL's global network, with Pearson expecting to generate revenues through subscriptions, licence agreements and e-commerce.

Pearson reported a 15% rise in pre-tax profits at £402 million for the year to December 31. Revenues from FT.com reached £7 million.